Tag Archives: Budgeting

Ways to Avoid Spending Temptations

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Do you find yourself buying items you don’t really need, or that weren’t on your list before you went into the store? Avoiding the temptation to buy things is not always easy, especially since as consumers we are often surrounded by items to purchase. What’s the best way to stop spending money? Know what triggers your impulse to spend.

Here are also some more ways to avoid the temptation to spend money:

Think about logistics. Before you decide to purchase something, think logistically – how will you use it? If you’re buying something that you’ll probably only use one day a year, is it really worth it to spend the extra money on it? Or if you’re about to purchase something that you have no storage space for, it might be a better idea to walk right by it.

When possible, use cash. Using a credit card to make purchases makes it almost too easy – especially when it’s an impulse buy. When you can, budget ahead for your purchases and only carry the cash you need to purchase the items on your list. If you only have a set amount in your wallet, you’ll be unable to buy any extra temptations. If you want to spend less – be sure to leave the credit card at home.

If you wouldn’t buy it at full price, don’t buy it on sale either. Just because something is on sale or clearance, doesn’t mean it’s a great deal. Do you really need this item? Is it something you’ve wanted for a long time? If the purchase isn’t something you would have used or bought at full price, buying it on sale is still overpaying and spending money you didn’t need to (for an item you’ll probably never use).

Make a list and stick to it. Before you go into the store, make a list. Planning ahead with a shopping list allows you to know exactly what you need and how much to plan to spend. When you don’t make a list and continue to be tempted by items you see in the store and add them to your shopping cart, it can really blow your budget – to the tune of hundreds in some cases.

Put the 24-hour rule in place. If you see an item that you absolutely have to buy, make a mental note to come back to it 24 hours later. This gives you a full day to really think the purchase through and decide if you actually need the item, and if you truly have the money for it. Also, don’t purchase it on impulse and tell yourself you can always return the item. More than likely, you never will.

Think about the long-term. Before you decide to purchase something, think about how long you’ll keep it for and be realistic. How would you feel about spending hard earned money on something, only to throw it away a few weeks or months later because you truly never needed it? Before you go out and buy a new item, take note of what you may already have at home that can be repurposed. Purchasing something new that just sits in a closet, is a waste of both your time and money.

If you need help creating a financial plan to avoid spending temptations, check out our handy budgeting guide or stop into your local First Financial branch!

Article Source: Moneyning.com

Easy Ways to Improve Your Finances this Year

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Have you already forgotten about or blown all those new year’s resolutions that you set for yourself last month? If you have, don’t worry – it’s still early enough in the new year to set some additional financial goals and attain them. In the process, you may even save yourself some money! Keep reading to see how you can remain on a great financial path for 2022, even if you already took a small detour.

Refinance your mortgage. Mortgage rates are still low. Do the math, and check out your current mortgage rate. If it’s on the high side, you may want to consider refinancing to a lower rate and lower monthly payments. This will allow you some wiggle room in your budget to put in your savings account, pay toward other bills, or even apply more to your mortgage principal and pay your home loan down sooner.

Did you know First Financial has recently brought back our Dream Decade 10-Year Mortgage? If you’re considering refinancing to a shorter term, this may be the perfect solution for you!*

Pay down debt. If you racked up a lot of credit card debt recently, make this the year you vow to pay it off and finally be financially free. Getting out of debt takes a lot of discipline, but you can do it! An easy way to start is by creating a spreadsheet and listing out all your balances owed, interest rates, and minimum monthly payments. Then you’ll need to create a debt repayment plan for yourself, to decide which to tackle first (usually the one with the highest interest rate and you’ll need to make more than the minimum payment each month to get it under control). If you need some help with a debt repayment plan, check out our credit management and debt reduction guide.

Create a budget and stick to it. No matter how much you bring home, creating a spending budget can still be a challenge. However, sticking to a budget that you set for the new year can really pay off in the end. If you need help getting started, check out our useful budgeting worksheet.

Stop overspending. If you’re using the budget you created and learning to automate savings by having extra funds sent to a special savings account from your paychecks, it should be a little easier to stop overspending. Here’s an eye opening spending challenge to try: don’t spend even one penny on anything you haven’t budgeted for the week (this includes morning coffee stops, lunch out, even a lottery ticket purchase or a pack of gum). At the end of the week, see how much more is left in your bank account by not purchasing all those little extras that can really add up.

Plan ahead, but don’t forget to look back too. Do you have any big life events coming up (weddings, births, vacations, retirement) that could definitely affect your bottom line? If so, start thinking about them now and putting some money away. This is also a good time of year to review all your current accounts and ensure you have up to date beneficiaries listed. Besides planning ahead, it’s also a good idea to look back on the previous year and take note of what might have gone wrong financially. If you didn’t have enough in your emergency savings account (or if you don’t have an emergency savings at all), this should be the year you start one or add some extra funds to it.

As always, if you need help creating and sticking to a financial plan – don’t hesitate to setup an appointment at your local First Financial branch. We’re happy to help!

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties. 

Article Sources:

https://www.cuinsight.com/4-personal-finance-resolutions-for-2022.html

https://www.cuinsight.com/4-ways-to-improve-your-financial-situation-in-2022.html

How to Create a Budget and Make Your Money Work for You

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Budget. Did you just get cold chills reading that word? It’s not a popular word, and it’s certainly not a popular idea. Typically, the idea of a budget is enough to take away any sense of fun you might have when thinking about spending your money. But, it doesn’t have to be.

There are several benefits to creating a monthly budget. When you have a budget in place, you instantly:

  •     Make your money work for you
  •     Assign each dollar in your account a job
  •     You get 100% control of your money
  •     You can track your expenses
  •     You’ll relieve some of the stress that finances can bring
  •     You will create a “safety net”

There are obvious benefits to creating and maintaining a budget, and there are just as many tools to help you budget as there are benefits.

So, where do you start?

First, figure out how much you make each month. Then, figure out how much you spend. Once you figure out what you’re bringing in vs. what you’re spending, you can start creating specific categories for your money. This is where you get to tell your money what to do.

Now, you’ve got a basic budget in place. You know what you’re making, what you’re spending, and your money has a specific goal. But, how do you keep track of all that information in a manageable way?

Budget apps! The great thing about budget apps – not only do they keep track of your budget, but you can take them with you everywhere you go. Check out some of the best budgeting apps for 2020.

Wally — Get the details of all your financial activity in an easy-to-digest template. Categorize spending destinations, set goals, and create charts. Wally provides you with the full picture of your account in a simple and colorful template. Easy to look at and easy to understand, Wally makes tracking and analyzing your financial habits easy.

Acorns — You know how it’s hard to overcome the mental hump of setting money aside? Well, Acorns removes that struggle from the equation. By rounding up each of your transactions to the nearest dollar, it puts the funds into an investment portfolio. This app looks out for “future you” and makes sure you always have a few acorns hidden away for a rainy day too.

Mint – Create budgets, track bills and receive a free credit report when you use Mint. However, it’s the budgeting feature that really makes Mint shine. It allows you to link your bank, loan, and credit card accounts and then uses the information from those accounts to suggest a budget for you based on your spending. Mint takes it a step further by breaking that spending down into categories like “entertainment,” “food and dining,” and shopping. The best part? You’ll be able to see how much you can save by cutting back in each category.

Mvelopes – A popular budgeting method is the envelope system, a style of budgeting, where you put cash in envelopes for different spending categories and when the envelope is empty, that budget category is spent for the month. This is great for people who like a cash only system, but for people who use credit and debit cards, this can be challenging. Enter Mvelopes, an app that makes it easy to follow cash style budgeting in a digital world.

Of course, while you’re downloading apps, make sure you’re using our mobile app! At First Financial, our app allows you to check your balances, transfer money, pay bills, review your spending and deposit checks remotely. Still have questions about budgeting and financial planning? Check out our handy budgeting guide, or make an appointment with one of our member service representatives and let us help get your budget on track!

 

Budgeting Mistakes that are Easy to Make

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Hopefully by now in the second month of the new year, you’ve mapped out your monthly budget and expenses. If not, get started here ASAP.

Once your budget is set, it’s definitely not always foolproof. Here are a few categories in which you might forget to include in your budget, and a couple mistakes that are easy to make so you can be sure to avoid them.

Are you really ready for anything? Did you remember to include an emergency fund when you created your annual budget? If not, this is a big category you don’t want to forget about. If you have an unexpected emergency and you have no emergency savings account back-up, you’ll either be taking money out of other accounts you shouldn’t be touching or racking up debt on your credit card. Either way, it’s going to put a major dent in your budget. If you don’t have an emergency fund, start one as soon as possible.

Do you keep guessing about monthly bills? If you have utility or other bills that vary from month to month, you may have to guess what they may be when you are setting up your monthly budget. When you are estimating bills that change each month, be sure you factor in a number that’s higher than you think it would normally be. This way you won’t short change yourself and you can be prepared for anything that comes up.

Your budget won’t always be fully complete. Most likely, things are going to pop up for the month like a spur of the moment dinner out with friends, or that family member’s birthday gift you forgot to include when you initially crafted your budget. Things like this can really add up on a monthly basis though, if you forget to include them. At the start of each month, sit down and look at all the dates on the calendar for the month ahead. Think about who might have a birthday coming up, if there’s a weekend outing, and so forth. Factor in as many expenses as you can, and if you have a little leftover – give yourself a bit of a buffer just in case anything comes up last minute so that you won’t have to use your credit card.

Don’t forget about annual fees. Look back over what you spent last year if you can. Do you have a credit card with an annual fee, or maybe a gym membership, insurance policy, or warehouse shopping club annual fee? Jot them all down and take note of any annual fees that might be due. Plan ahead and try to set the money aside so you know you are covered when the bill comes in.

Like anything, there is a learning curve when you are first getting used to doing something like creating a monthly budget. Give yourself a bit of wiggle room and if you make a mistake, try to get back on track for the next month.

In addition to our budgeting guidebook above, also check out our online fillable PDF budgeting worksheet here. Come back each month and fill it out for the upcoming weeks ahead!

Article Source: John Pettit for CUInsight.com

How to Actually Save Money Every Month

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It’s easy to stop pulling out your wallet every so often, but in actuality it’s our recurring expenses that typically get us into debt. Many people often ignore monthly expenses because they are subconsciously used to just paying the usual bills each month. However, there are a few areas that when you eliminate them or find ways to cut them down – you can actually save yourself some money on a monthly basis.

Take note of the following bills – can you cut any of these out completely or down?

  • Cell Phone. First look to see if there are any items you can cut from your monthly plan that will save you money on your bill. If not, consider switching carriers – there are often plenty of deals out there. Something else to look into is a prepaid cell phone plan. This may not work for everyone, but many have had success with saving a lot of money on their monthly cell phone bill this way and only using their mobile phone when they truly need it.
  • Home Phone. Is this something you actually use, or can you get away with just using your cell phone as your monthly bill? If you are still paying your cable company for a land line and you don’t use it – find out if eliminating this can add some savings back into your bank account each month.
  • TV. More than likely you probably pay way too much for your favorite shows through your cable provider. Have you sat down and looked at what you can still watch through avenues such as Hulu or Netflix for a fraction of the cost?
  • Gym Membership. Do you actually go to the gym and use your membership? If you do go daily, this would probably be one bill worth keeping. However – if you rarely go and continuously pay money each month, this may be one membership to consider cancelling and instead jog outdoors when the weather is nice or run at your local park instead.
  • Other Subscriptions. Included in this category would be newspaper or magazine subscriptions, warehouse shopping clubs, meal prep services, and so forth. How many subscriptions do you really need? Be honest with yourself. Are you paying a lot more for groceries by using a meal prep service? Really take a good look (and a calculator) at how much you are spending per month in this category and cut out as much as possible.
  • Utilities. Make sure your lights and electronics are off and unplugged whenever you aren’t in the room or using them. Open the windows and use fans during interim seasons when you don’t need the air conditioning yet. Besides helping your utility bills, these actions also help the environment.
  • Medications. Always ask to switch your prescription medications to the generic brand when possible. This will save you a lot of money. Also when you can, see if you can purchase a 90 day supply of maintenance medications. Usually this is a cheaper option instead of going to the pharmacy every 30 days for monthly refills, and more convenient too.
  • Vehicles. In the nicer weather, you will save money by washing your own car at home instead of going to the car wash. Also look for coupons and deals online before you take your car for regular maintenance such as oil changes or tire rotations, there is usually always one available.
  • Insurance. Call around and see if you can find a better deal and pay less. This includes car insurance, homeowner’s insurance, renter’s insurance and the like.

Things to try:

  • Don’t Bring Your Credit Card Out for 1 Month. At first, you will probably feel restricted but this exercise will help you realize what you are spending money on. Which most of the time it’s probably an impulse purchase or an item you don’t truly need. When you pay with cash, you’ll often find you are more conservative with your purchases.
  • Pretend You’re Broke. Try this for 30 days – live on ramen noodles like your college days, and so on. This will show you that the salary you work hard for now should not be wasted on things that aren’t absolutely necessary.
  • Add Up Your Monthly Subscription Costs. As mentioned previously, jot down how much you are paying out in subscriptions every month. Even something that’s $40 a month adds up to nearly $500 a year. That’s a lot of money.
  • Check Your Statements. Watch out for those monthly automatic payments. Review all your monthly purchases and really scrutinize what you are buying. It always adds up to more than you think.

Need some help creating a monthly budget? Check out our easy fillable PDF budgeting worksheet!

Article Source: David Ning of Moneyning.com

Five Budgeting Tips You Can Live By

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It’s hard to make budgeting decisions. It can be difficult to keep an eye on your short-term and long-term financial goals when you’re busy with everyday life. But putting together and following a spending plan can work wonders on your finances. Here are five tips you can use starting today.

1. Budget until there’s nothing left.

If you love spreadsheets, zero-sum budgeting might be the right move for you. It’s budgeting so every single cent is accounted for.

Try creating buckets for specific expenses — housing, transportation, food, and entertainment. After assigning amounts to these costs, stash what’s left over in savings.

When you sit down to put together your monthly budget, you can make categories for your big expenses and then create line items for smaller costs. Smaller expenses would include activities such as eating out or shopping.

The goal is to stay on top of your money from the beginning to the end of the month. Then repeat.

2. Get your loved ones involved.

Money management is a tough subject for most couples. However, avoiding money talks causes bigger issues that go beyond banking. That’s why you may want to work with your partner to decide on monthly spending — as a team. Discuss your short-term and long-term financial goals as a couple. Look over what you’ve got in your account(s) and go from there. But don’t forget about your individual needs. Both of you may also want to have cash for items or activities that bring you happiness. And if either of you is a big spender, have an honest talk about what you might be able to realistically cut back on.

3. Take advantage of technology.

Do you like using mobile apps? There are some great ones that exist for tracking your spending. Online banking apps also help you with automatic bill pay and lots of other features. You can view your cash in and cash out with ease and really get a handle on what money you’re spending. We’re all busy and any way technology can help is a plus. Of course, if you’re more comfortable keeping track of your expenses with pen and paper, that works too.

4. Give yourself time to adjust.

People who embrace budgeting for the first time often struggle. While getting over this is key to success, you shouldn’t expect to become a money pro right out of the gate. Understand that you’ll need time to adjust and that small setbacks are bound to happen when following a budget. Also, keep in mind that you might have to change your plan from time to time. An approach that worked last year might not work this year due to changes in your personal life or career. Don’t be afraid to switch things up if necessary.

5. Think about today and tomorrow.

Kick off budgeting with short-term goals like paying your credit card minimums or saving for a new car.

But don’t forget far-off goals and life events too. If you were to pass away, some of your everyday expenses stick around, like student loan debt and mortgage payments. You need to make sure your loved ones won’t be left without the cash needed to cover these costs. Getting life insurance is a good way to do this. This coverage, which insurers offer as part of term or whole-life policies, can cover some of your expenses and spare your family from having to pay out of pocket.

How to learn more about life insurance

Life insurance may seem complicated, but it’s not that hard once you know the basics. Of course, we are happy to help all of our members. Learn more here, and you can also use our TruStage Life Insurance Calculator to compare different types of insurance and learn more about your options.

TruStage® Insurance products and programs are made available through TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company and other leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by any financial institution.

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